Sports betting bill wins final approval from Kentucky lawmakers

“We love our sports in the commonwealth,” Republican Senate Majority Leader Damon Thayer said in promoting the bill during debate. “And people want to be able to make the choice — of their own free will — to make a wager on a sports event, like almost all of our surrounding states.”

The Democratic governor, who has advocated for sports betting throughout his term, hailed the bill’s passage, declaring in a social media post: “Kentuckians will soon be able to place their bets here and for the first time” keep the resulting tax revenue in the Bluegrass State.

The bill’s fate had loomed as one of the biggest uncertainties heading toward the conclusion of the 30-day legislative session. Supporters needed a minimum of 23 votes to pass it because it’s a revenue-producing bill in a non-budget year. The Senate ultimately decided to allow residents in the state that’s home to the Kentucky Derby to legally wager on other sporting events.

The bill would legalize, regulate and tax sports wagering in Kentucky. Supporters said it’s estimated to generate about $23 million a year in tax revenue and licensing fees. Thayer said he thinks that the estimate is low.

Opponents called sports betting a highly addictive form of gambling that would hurt Kentucky families. Referring to the revenue estimates, Republican Sen. Whitney Westerfield said during the debate: “Ask yourselves, how much money people of Kentucky have to lose before we get that?”

“There will be people hurt by this,” Westerfield said. “There will be people who can’t afford to bet, who will bet anyway.”

The bill would allow Kentucky’s horse racing tracks to be licensed as sports betting facilities for a $500,000 upfront fee and an annual renewal cost of $50,000.

Participating tracks could contract with up to three service providers for sports wagering services at the track itself, or through online sites and mobile applications. Service providers would have to pay $50,000 for an initial license and $10,000 a year to renew.

The Kentucky Horse Racing Commission would regulate sports wagering operations.

Revenue from taxing such wagering would cover regulatory costs. A percentage of the revenue would go to a fund to help combat problem gambling. After that, the revenue would go to the state public pension system.

Thayer, a long-running proponent for legal sports wagering, said he views it as an extension of “our time-honored tradition of betting on horse races.” “This is a great day for the commonwealth and its people,” he said. “Freedom won the day.”